The future of sports marketing

The European and Copa América Cup just wrapped up. Wimbledon has crowned its champions. The Tour de France is in full swing. And the Olympics are on the near horizon. With such an incredible summer of sport, we thought we’d share our perspective on the future of sports marketing.

We’ve witnessed an incredible evolution of the sports marketing industry over the last decade, and as we look ahead, it’s clear innovation will continue to drive it forward. Here are some thoughts on trends that will shape the future of the industry.

Convergence of sports, entertainment and technology

The future of sports lies in digital transformation. A recent guest of the (add)ventures Brand Slam, UConn Men’s Head Basketball Coach Dan Hurley, shared the following: “When coaching, there is leadership … there is psychology and motivation … there is player development … there is branding … there is social media. We are constantly trying to chase mastery of something that is impossible to master.” A national champion coach talking about branding and social media? The “game” has changed. Expectations of how a brand shows up—a player, a coach, and a sponsor—needs an analytical approach to drive outcomes.

The rise of esports and virtual experiences

Esports has emerged as a formidable force in the sports industry, and with the global audience growing rapidly, there’s a unique opportunity for brands to reach a younger, tech-savvy demographic. Sponsorships, in-game advertising and branded virtual events are just a few ways that brands can tap into the esports market. The integration of VR and AR in sports marketing offers immersive experiences that were previously unimaginable. Fans can virtually attend games, interact with players and engage with brands in innovative ways—so now these technologies not only enhance fan engagement, they open new revenue streams for sports organizations.

How do you choose the sport to align to your brand?

Finding the right sport or athletic event to align with your brand is like breaking in a baseball glove—it can take time. When AOC launched a new line of Smart TVs in Latin America, we helped them leverage their partnership with the FIFA World Cup to develop a campaign targeting fútbol fans to purchase the best TV to enjoy the tournament. And don’t be afraid to embrace emerging sports. There’s no algorithm that will tell you what’s right and wrong for your brand.

Be open to emerging sports

Take for instance, the Drone Racing League (DRL), an immersive drone racing competition that brings high-speed competition IRL, in virtual simulators and in the metaverse. The DRL attracts a tech-savvy, predominantly young, affluent audience with a keen interest in innovation, gaming, and competitive sports. Seventy percent of DRL fans don’t follow traditional sports. It has a global following and strong online and social media presence with 5.3 million TikTok already. It’s growing faster globally than all five major sports leagues.

Innovative fan engagement strategies

Engaging fans in a meaningful way is crucial for the success of any sports marketing campaign. Interactive content, such as polls, quizzes and live Q&A sessions, can drive higher engagement rates. Additionally, gamification elements like fantasy leagues and prediction games can keep fans involved and invested.

Creating and nurturing communities around sports teams and brands fosters loyalty and long-term engagement. Online forums, social media groups and fan clubs are excellent platforms for building these communities.

Evolving media consumption habits

The way fans consume sports content is changing—traditional TV viewership is on the decline while streaming services and social media platforms are becoming the primary channels for sports consumption. Brands need to adapt their strategies to meet fans where they are, now.

With the rise of platforms like TikTok and Instagram Reels, short-form content is becoming increasingly popular. Brands can create bite-sized, engaging content that captures the attention of younger audiences and encourages sharing.

Proliferation of sports betting

One in five Americans has an online sports betting account, and, in 2023 Americans wagered a record $119.84 billion on sports betting—that’s up 27.5% from 2022, according to the American Gaming Association's Commercial Gaming Revenue Tracker. More importantly, the digital sportsbooks that are fueling this rise are remarkably sticky. With 59% of online bettors betting at least once a week, and 24% betting three or more times a week, this creates a perfect captive audience for the right brands. And yes, you can bet on drones.

While online sportsbooks provide a captive audience for some brands, the question of brand safety arises when engaging with any form of gambling. Our advice? Consider alignment based on core brand values and ask the same questions you would about any sponsorship: What’s the risk vs. reward, and is it a safe space for your brand.

It’s clear the future of sports marketing is dynamic and full of opportunities. We believe brands should remain agile, continuously evolve with how people consume sports, and always prioritize the fan experience. The future is bright for those willing to think outside the box and play to win.